What is the Lombard Rate? The term Lombard rate has been used globally by people in various sectors to refer to the interest rate used by the central bank - Bundesbank. Moreover, the term Lombard credit refers to the credit given to other banks by the Bundesbank against the pledges presented. These pledges are mostly life insurance policies or secur...

What is a Weak Currency? A nations currency that has a value depreciation while other currencies are experiencing value appreciation is a weka currency. When decrease in value is particular to one currency when compared to other currencies, the currency is said to be weak. There are some factors responsible for weak currency but the major one is the...

What is a Box-Cox Transformation? A Box-Cox power transformation refers to a way of transforming response to satisfy the usual regression assumption of homogeneity and normality of variance. The regression model is therefore used to fit the transformed response. The Box-Cox power transformation can be used to transform a variable for other various p...

When is a  Tying Contract Illegal Under the Clayton Act? A tying contract is one in which a product is sold or leased only on the condition that the buyer purchase a different product or service from the seller or lessor. A common type of tying, known as full-line forcing, is where a seller compels the buyer to take a complete product line from the ...

What is Random Factor Analysis? Random factor analysis refers to a statistical technique that is used to identify the origin of the randomly collected data. Random factor analysis is applied when you want to determine whether the underlying trend is the cause of the outlying data or the event occurs randomly. Generally, it tries to explain the seemi...

What is Alternative Dispute Resolution (ADR)? ADR, as the name implies, is an alternative to resorting to litigation to resolve a legal dispute between parties. The most common forms of ADR are: Mediation  and Arbitration. How does Alternative Disputre Resolution affect litigation? Since ADR is an alternative to litigation, disputing parties do not ...

What is Algorithmic Trading? Algorithmic trading is a system of trading whereby advanced mathematical tools and computer programs are used in facilitating trade and making decisions in the financial markets. Algorithmic trading is a method that helps in facilitating trade and solve trading problems using advanced mathematical tools. This system of t...

What is Exports as Percentage of GDP? Exports as a percentage of GDP is simply the dollar value of all exports divided by the total GDP (measured by what is consumed or what is produced).  Related Topics Trade Balance: Surplus and Deficit Mercantilism J Curve National Trade Data Bank Capital Account (Economics) Merchandise Trade Balance Current Acco...

What is an Assessment Ratio? This is the assessed value in terms of dollars that an Assessor's Office places on a piece of property. It is the market value as estimated by the Assessor. The appraisal department of a district estimates the values of properties and then uses these values to determine the property tax. The appraisal ratio is the ratio ...

What is an Adjustable-Rate Mortgage? This is a form of mortgage where the interest rate on the outstanding balance is not constant but varies throughout the life of the loan. The initial rate is first fixed for a period of time, and then it resets periodically after a month or a year. These interest rates adjust with London Interbank Offered Rate (L...